Item	Yen in thousands
Net income before tax reported on the income statement in current year	$2,000
Depreciation expense included in earnings before tax in current year	$3,000
Finance expenses not deductible for tax purposes	$1,200
Depreciation deductible for tax purposes in a prior year	$6,500
Corporate tax rate	35%

The companys end-of-year balance sheet will most likely include (in thousands) a deferred tax

Question options:

	liability of $2,345.
	liability of $1,225.
	asset of $805.

The Walton Firm has 1,000,000 common shares issued and outstanding. This stock was issued at a premium above its $10 per share par value. During the current fiscal year, the board of directors declared a 15 percent stock dividend that created 10,000 new shares issued to the existing stockholders when the price of the stock was $35 per share. Based on this information, what is the amount of the reduction recorded in stockholders' equity?

Question options:

	0
	$3,500,000
	$1,000,000
	$1,500,000